China has unveiled its most substantial package yet to address the challenges in its property market, a critical part of the country’s economy. The People’s Bank of China (PBoC) introduced a 300 billion yuan ($41 billion) fund to allow state-owned enterprises to purchase unsold homes from developers, converting them into affordable housing. This measure is aimed at reducing the significant overhang of unfinished projects and boosting confidence in the market.
Source:- news 18
In addition to this, mortgage rules were relaxed further, with down payment requirements for first-time buyers reduced to 15%, and banks allowed to set their own mortgage rates, potentially lowering them below 3%. This is part of a broader effort to stimulate demand in a sector that has been under pressure from high levels of unsold inventory and declining prices.
Source:- bbc news
The government also emphasized its commitment to completing unfinished projects, providing some relief to homebuyers who had pre-purchased properties from struggling developers. These reforms are seen as necessary to restore confidence, although analysts caution that the success of these measures will depend on effective implementation and further support for local governments, many of which are heavily in debt
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